What is Zcash Cryptocurrency (ZEC)?
Zcash (ZEC) cryptocurrency is decentralized, open source. It uses innovative cryptography to achieve privacy. In the development of Zcash (ZEC) cryptocurrency participated specialists working with Bitcoin, engineers who created Zerocash. Anonymous cryptocurrencies, which include ZCASH, are in high demand among users seeking to stay under the scrutiny of regulators and tax authorities.
It is worth mentioning that the decentralized cryptocurrency ZEC, is based on the protocol Zerocash. It in turn was created by several groups of blockchain engineers from different universities, including Johns Hopkins, Tel Aviv University, and others.
The Zcash network itself launched on October 28, 2016. The project's executive director is Z. Wilcox. Also the team of the anonymous cryptocurrency includes programmers, designers, legal experts, financiers and so on.
What is Zcash Cryptocurrency (ZEC)?
Operating Principle of ZCASH
The ecosystem operates on the Proof-of-work consensus algorithm. ZCASH miners process transactions and generate new blocks. In general terms, the technology is as follows. The system performs confirmation of transactions, but information about the account owner, the amount of transferred funds and their balance on the cryptocurrency wallet.
There is no public access to the data. The user has the right to close the information about the transaction. Any user of the network, can confirm the possession of certain information without disclosing it. To verify the authenticity of the scheme, a quadratic asymmetric program is used, which was created in 2013.
In turn, the program generates a random verification point, and it is not known to senders or validators. Homomorphic encryption, an elliptic curve connection, is used for this purpose.
Whoever receives the funds forms a cluster of keys, which includes the spending key, the view key, the payment address. When a hidden transaction is created, the key cluster is inaccessible, the information can only be obtained by request. In turn, the one who sends the hidden transaction creates a memo and it includes the payment key, the transfer amount, the set zeroing, and the transfer trap.
The note confirms that the amount specified in it can be spent by the recipient who has a spending key that matches the payment key.
Features and differences from other cryptocurrencies
The main features lie in the blockchain. In it, each node is assigned a part of a chain that forms a tree, where blocks are connected to each other using hashPrevBlock.
When funds are sent on the blockchain network, a lot of preliminary work is done. However, transactions are confirmed in seconds. An important feature of cryptocurrency is that if transactions are not confirmed within 60 minutes, they are invalidated. Funds are returned back to the person who sent it.
Another difference from other cryptocurrencies is that transactions in the network are divided into 4 types: public, secure, dematerialized, confidential.
When a secure transaction is executed, the sender can transmit the necessary data to the recipient in an encrypted form, using a memo-field.
The main feature is that the cryptocurrency is anonymous because it uses a zero-disclosure design called Zero-knowledge proof. It allows the user to exchange data without revealing their identity. ZCASH tokens can be obtained through mining.
Mining Zcash (ZEC).
The process of mining ZCACH is somewhat similar to Bitcoin mining, as they employ the same consensus model, but there are differences.
To mine the ZCASH cryptocurrency, the Equihach algorithm is used, which has high RAM requirements. The ecosystem has undergone an upgrade designated as Blossom. It managed to reduce the block creation time to 1 minute. The network throughput has also increased. The reward for the block was reduced to 6. 25 ZEC, the fee has not changed.
There are plans to add sharding technology to the ecosystem, and then it will be possible to process a large number of transactions per second. In that case, the whole blockchain would have to change. But this should not affect the anonymity of the cryptocurrency.
Cryptocurrency mining is supported by several dozen pools. The most famous include Poolin.com, as well as F2pool.com. There are others as well.
What are the main benefits of cryptocurrency
The main advantages include the fact that transactions are made with a small commission (0, 0001 Zec), addresses and transactions are private, there are encrypted fields for notes, you can use multisignature.
Where can I buy
There are cryptocurrency exchanges where you can buy cryptocurrency. One of the most famous cryptocurrency exchanges is Kraken and Binance. You can also buy on YoBit, Indoex. You can buy ZCASH for rubles at appropriate exchangers, which are available online. It is better to use hardware Bitcoin wallets for storage.
Is it worth investing in ZCASH?
Virtual money such as Zcash (ZEC) can be seen as a profitable asset to invest in. At the same time, one cannot deny the fact that it is a high-risk investment tool, just like other currencies of the cryptocurrency economy. Therefore, the final decision to invest should be made by the user himself, having calculated the risks. If you look at the cryptocurrency news, you will notice that they regularly emphasize that cryptocurrencies have high volatility, which can dramatically affect the value of the asset.
Cryptocurrency Forecast and Prospects for 2021-2022
ZCASH currently stands at $149 per coin. What is the cryptocurrency's outlook and forecast for next year? It is possible that the cryptocurrency will rise to the $200 mark in 2022 if the bullish trend that is currently in effect in the market continues. Regarding the outlook, it can be noted that the currency will be in demand among users for whom the anonymity of transactions is important.
Everything else will depend on many factors, including the actions of regulators, new legislative norms, community activity, the work of protocol developers. There may be some events which may either dramatically increase or decrease the price of the currency.